Rising Yields Discussion

Someone asked me if I am worried about "Rising yields."
The threat visualized HERE.
I know that CNBC often uses this to drum up fear and viewership.
1) Technically i concur that there is a setup for "yields" to spike. The TNX (10yr yield) chart shows it.

2) Stocks may care for a minute because of the media hype

3) In the end won't matter much. Apple Google, Netflix are not going to have fewer sales if the 10yield pays 1.6% or 2.5%. In 2018 it was over 3%.

I am not a bond experts but there is something called TINA (There Is No Alternative acronym). The higher the US yields go the more money will pile into them. So that will put a lid on yields because when there is a bid for bonds the yields fall (TLT rises and TNX falls).

In Europe bonds are negative yields. So any money looking for fixed income is a slam dunk decision to run into US bonds = TINA and a catch 22 for rising yields.

Posted to Create Income with Options … on Oct 19, 2021 — 2:10 PM
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